Do Aussies like where they live?

Four out of 10 (41 per cent) of those who are living in a location of choice bought a home in the area where they desire to reside, while two out of 10 rent and one in 10 live with family in their preferred location.

Digging into the NAB data, the research revealed that each state has a different number of people living in the area or region they desire to live in.

In general, 76 per cent of Queenslanders and 74 per cent of South Australians do like where they live, but the same can only be said of 68 per cent of ACT residents, 67 per cent of NSW residents, and 61 per cent of Tasmanians.

Those who bought and currently reside in a house in their desired location were most likely to do so in Queensland (49 per cent) and Western Australia (also at 49 per cent), and least likely to do so in NSW (34 per cent).

On the other hand, 30 per cent of Australians aren’t satisfied with where they live – and are split evenly between home ownership, rental arrangements, and living with family.

NAB’s study also showed that the number of Australians who believe now is a good time to buy a home declined for the third quarter in a row to just 25 per cent in Q3, down from 29 per cent in Q2.

The percentage of people who thought it was a good time to buy an investment property dropped to 23 per cent in Q3 from 25 per cent in Q2 and 31 per cent at the same time last year.

Even with predictions that house prices will pull back in the next 12 months, the number of Australians planning to purchase property has still declined to 13 per cent in Q3 from 14 per cent in Q2.

Andy Kerr, executive for home ownership at NAB, said that “affordability has been a concern in 2021 with house prices up around 25 per cent, but we are seeing the early signs of prices easing as supply comes back on to the market”.

He added: “In October, we saw Melbourne and Sydney both ease month-on-month from their peak growth in March. NAB’s forecast is for the market to be strong until the end of the year and a more subdued market in 2022.”

He has forecast that those easing prices will mean suburbs closer to the city will again become an option for potential purchasers – one that’s been ruled out by many over the past 12 months or so. 

For those who are still deciding on where to live, Mr Kerr gave some practical tips: “The world continues to change so make sure you’re reflecting what hybrid working may look like in the future, particularly as our CBDs come back to life.

“I would encourage Aussies to consider if you are working two or three days a week in the city, what does that look like in six or 12 months’ time?

He has also highlighted the importance of research, considering it as “invaluable to have a good sense of what’s going on in the market. Buyers can then be well-armed when they do go to bid on the home they want.”

In closing, he shared an observation of the bank, which could serve as a lead for people scouting for options: “Suburbs closer to the city, with easing prices will become an option that we really haven’t seen to the same extent the last 12 months. We are seeing little green shoots of people returning to inner-city suburbs, looking for the balance of lifestyle and value.”